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Dictionary C

TermExplanation
Cab ExtendersAlso called gap seals, which help to close the gap between the tractor and the trailer
CAESee Computer Aided Engineering
Cage(1) A secure enclosed area for storing highly valuable items, (2) a pallet-sized platform with sides that can be secured to the tines of a forklift and in which a person may ride to inventory items stored will above the warehouse floor.
CalculationThe critical path along the following elements: Total Sourcing Lead Time, Manufacturing Order Release to Start Manufacturing, Total Manufacture Cycle Time (Make-to-Order, Engineer-to-Order, Configure/Package-to-Order) or Manufacture Cycle Time (Make-to-Stock), Complete Manufacture to Ship Time Note: Determined separately for Make-to-Order, Configure/Package-to-Order, Engineer-to-Order, and Make-to-Stock product
Can-order PointAn ordering system used when multiple items are ordered from one vendor. The can-order point is a point higher than the original order point. When any one of the items triggers an order by reaching the must-order point, all items below their can-order point are also ordered. The can-order point is set by considering the additional holding cost that would be incurred should the item be ordered early.
Capability maturity model (CMM)A framework that describes the key elements of an effective software process. The CMM covers practices for planning, engineering and managing software development and maintenance. When followed, these key practices improve the ability of organizations to meet goals for cost, schedule, functionality and product quality.
Capable to Promise (CTP)A technique used to determine if product can be assembled and shipped by a specific date. Component availability throughout the supply chain, as well as available materials, is checked to determine if delivery of a particular product can be made. Capable-to-promise is used to determine when a new or unscheduled customer order can be delivered. Capable-to-promise employs a finite-scheduling model of the manufacturing system to determine when an item can be delivered. It includes any constraints that might restrict the production, such as availability of resources, lead times for raw materials or purchased parts, and requirements for lower-level components or subassemblies. The resulting delivery date takes into consideration production capacity, the current manufacturing environment, and future order commitments. The objective is to reduce the time spent by production planners in expediting orders and adjusting plans because of inaccurate delivery-date promises.
CapacityThe physical facilities, personnel and process available to meet the product or service needs of customers. Capacity generally refers to the maximum output or producing ability of a machine, a person, a process, a factory, a product, or a service. Also see: Capacity Management
Capacity ManagementThe concept that capacity should be understood, defined, and measured for each level in the organization to include market segments, products, processes, activities, and resources. In each of these applications, capacity is defined in a hierarchy of idle, non-productive, and productive views.
Capacity PlanningAssuring that needed resources (e.g., manufacturing capacity, distribution center capacity, transportation vehicles, etc.) will be available at the right time and place to meet logistics and supply chain needs.
CAPEXA term used to describe the monetary requirements (Capital Expenditure) of an initial investment in new machines or equipment.
CARATCargo Agents Reservation Air Waybill Issuance and Tracking.
CaretakerA person, normally an agent accompanying a shipment that requires special attention while en route. An attendant
CARGOThe freight carried by a ship, an aircraft, or another vehicle.
Cargo Restriction CodeA code indicating that the use of a certain container is restricted to particular cargo.
Cargo UnitA vehicle, container, pallet, flat, portable tank or any other entity or any part thereof which belongs to the ship but is not permanently attached to that ship.
Carload Lot1) Quantity of freight required to fill a railcar. 2) Specified quantity necessary to qualify a shipment for carload rate.
CarnetA Customs document permitting the holder to carry or send special categories of goods temporarily into certain foreign countries without paying duties or posting bonds.
CarouselCarousels are a technology used to store items for eventual picking or retrieval. There are two primary types of carousels and one related technology, all of which operate under some form of computer control. Since the late 1990s, carousels have been placed under the more general category of AS/RS.
Carriage Paid To (named place of destination)“Carriage paid to ” means that the seller pays the freight for the carriage of the goods to the named destination. The risk of loss of or damage to the goods, as well as any additional costs due to events occurring after the time the goods have been delivered to the carrier, is transferred from the seller to the buyer when the goods have been delivered into the custody of the carrier.
Carrier HaulageThe inland transport service which is performed by the sea-carrier under the terms and conditions of the tariff and of the relevant transport document.
Carrier LiabilityA common carrier is liable for all shipment loss, damage, and delay with the exception of that caused by act of God, act of a public enemy, act of a public authority, act of the shipper, and the goods’ inherent nature.
Carrier’s LienThe carrier’s right to hold the shipper’s property as security until such time as a shipping debt is paid.
Carrying TemperatureRequired cargo temperature during transport and storage of perishable and sensitive cargo
Cartage1) Charge for pick-up and delivery of goods 2) Movement of goods locally (short distances).
CartelA group of companies that agree to cooperate, rather than compete, in producing a product or service, thus limiting or regulating competition.
Carton Flow RackA storage rack consisting of multiple lines of gravity flow conveyors.
Case CodeThe UPC number for a case of product. The UPC case code is different from the UPC item code. This is sometimes referred to as the “Shipping Container Symbol” or ITF-14 code.
Case MarkInformation shown on the outside of a shipping carton, including destination and contents.
Cash Against Documents (CAD)A method of payment for goods in which documents transferring title are given to the buyer upon payment of cash to an intermediary acting for the seller.
Cash Before DeliverySeller assumes no risk and extends no credit because payment is received before shipment.
Cash Conversion Cycle1) In retailing, the length of time between the sale of products and the cash payments for a company’s resources. 2) In manufacturing, the length of time from the purchase of raw materials to the collection of accounts receivable from customers for the sale of products or services.
Cash In Advance (CIA)A method of payment for goods whereby the buyer pays the seller in advance of shipment of goods.
Cash with Order (CWO)A method of payment for goods where cash is paid at the time of order, and the transaction becomes binding on both buyer and seller.
Cash-to-Cash Cycle TimeThe time it takes for cash to flow back into a company after it has been spent for raw materials.
Catalog aggregationNormalizing product data from multiple vendors so it can be easily compared. Virtual distributors and content aggregators often provide this service to buyers. Most valuable when products are complex and have many attributes.
Catalog ChannelA call center or order processing facility that receives orders directly from the customer based on defined catalog offerings, and ships directly to the customer.
Categorical PlanA method of selecting and evaluating suppliers that considers input from many departments and functions within the buyer’s organization and systematically categorizes that input. Engineering, production, quality assurance, and other functional areas evaluate all suppliers for critical factors within their scope of responsibility.
Category ManagementThe management of product categories as strategic business units. This practice empowers a category manager with full responsibility for the assortment decisions, inventory levels, shelf-space allocation, promotions, and buying. With this authority and responsibility, the category manager is able to more accurately judge the consumer buying patterns, product sales, and market trends of that category.
Causal ForecastIn forecasting, a type of forecasting that uses cause-and-effect associations to predict and explain relationships between the independent and dependent variables.
Cause-and-Effect DiagramIn quality management, a structured process used to organize ideas into logical groupings. Used in brainstorming and problem-solving exercises. Also known as Ishikawa or fish bone diagram.
CellA manufacturing or service unit consisting of a number of workstations, and the materials transport mechanisms and storage buffers that interconnect them.
Cellular manufacturingA manufacturing approach in which equipment and workstations are arranged to facilitate small-lot, continuous-flow production. In a manufacturing “cell,” all operations necessary to produce a component or subassembly are performed in close proximity, thus allowing for quick feedback between operators when quality problems and other issues arise. Workers in a manufacturing cell typically are cross-trained and, therefore, able to perform multiple tasks as needed.
Cellular VesselShip specially constructed for the stowage of containers in vertical stacks or cells. These stacks or cells are normally six to seven levels high when below decks, or three to four levels high when above decks.
Center-of-Gravity ApproachA supply chain planning methodology for locating distribution centers at approximately the location representing the minimum transportation costs between the plants, the distribution centers, and the markets.
Central DispatchingThe organization of the dispatching function into one central location. This structure often involves the use of data collection devices for communication between the centralized dispatching function which usually reports to the production control department and the shop manufacturing departments.
Central WarehouseA warehouse which performs centralised functions for a number of other warehouses. (e.g. keeping capacity stock).
Centralized DispatchingThe organization of the dispatching function into one central location. This structure often involves the use of data collection devices for communication between the centralized dispatching function, which usually reports to the production control department, and the shop manufacturing departments.
Centralized Inventory ControlInventory decision making (for all SKUs) exercised from one office or department for an entire company.
Certificate of Analysis (COA)A certification of conformance to quality standards or specifications for products or materials. It may include a list or reference of analysis results and process information. It is often required for transfer of the custody/ownership/title of materials.
Certificate of Free SaleA certificate, required by some countries as evidence that the goods are normally sold on the open market and approved by the regulatory authorities in the country of origin.
Certificate of inspectionA document certifying that merchandise (such as perishable goods) was in good condition immediately prior to its shipment.
Certificate of InsuranceA negotiable document indicating that insurance has been secured under an open policy to cover loss or damage to a shipment while in transit.
Certificate of public convenience and necessityThe grant of operating authority that is given to common carriers. A carrier must prove that a public need exists and that the carrier is fit, willing, and able to provide the needed service. The certificate may specify the commodities to be hauled, the area to be served, and the routes to be used.
Certified SupplierA status awarded to a supplier who consistently meets predetermined quality, cost, delivery, financial, and count objectives. Incoming inspection may not be required.
CFDSee Continuous Flow Distribution
CGMPSee Current Good Manufacturing Practice.
Chain of CustomersThe sequence of customers who, in turn, consume the output of each other, forming a chain. For example, individuals are customers of a department store which in turn is the customer of a producer who is the customer of a material supplier.
Chain ReactionA chain of events described by W. Edwards Deming: improve quality, decrease costs, improve productivity, increase market with better quality and lower price, stay in business, provide jobs and provide more jobs.
Challenge and ResponseA method of user authentication. The user enters an ID and password and, in return, is issued a challenge by the system. The system compares the user’s response to the challenge to a computed response. If the responses match, the user is allowed access to the system. The system issues a different challenge each time. In effect, it requires a new password for each logon.
ChampionA business leader or senior manager who ensures that resources are available for training and projects, and who is involved in project tollgate reviews; also an executive who supports and addresses Six Sigma organizational issues.
Change ManagementThe business process that coordinates and monitors all changes to the business processes and applications operated by the business, as well as to their internal equipment, resources, operating systems, and procedures. The change management discipline is carried out in a way that minimizes the risk of problems that will affect the operating environment and service delivery to the users.
Change OrderA formal notification that a purchase order or shop order must be modified in some way. This change can result from a revised quantity, date, or specification by the customer; an engineering change; a change in inventory requirement data; etc.
ChannelA method whereby a business dispenses its product, such as a retail or distribution channel, call center or web based electronic storefront.
Channel ConflictThis occurs when various sales channels within a company’s supply chain compete with each other for the same business. An example is where a retail channel is in competition with a web-based channel set up by the company.
Channel PartnersMembers of a supply chain (i.e., suppliers, manufacturers, distributors, retailers, etc.) who work in conjunction with one another to manufacture, distribute, and sell a specific product.
Channels of DistributionAny series of firms or individuals that participates in the flow of goods and services from the raw material supplier and producer to the final user or consumer.
Chargeable WeightThe shipment weight used in determining freight charges. The chargeable weight may be the dimensional weight or, for container shipments, the gross weight of the shipment less the tare weight of the container.
Charging AreaA warehouse area where a company maintains battery chargers and extra batteries to support a fleet of electrically powered materials handling equipment. The company must maintain this area in accordance with government safety regulations.
Charter ContractA separate, identifiable element of charges to be used in the pricing/rating of common services rendered to customers.
ChartererThe legal person who has signed a charter party with the owner of a vessel or an aircraft and thus hires or leases a vessel or an aircraft or a part of the capacity thereof.
ChassisThe undercarriage of a trailer on which van containers are placed for road movement.
ChockA wedge, usually made of hard rubber or steel, that is firmly placed under the wheel of a trailer, truck, or boxcar to stop it from rolling.
ChurnThe relentless cycle of acquiring new customers and losing others that characterizes consumer e-commerce and reduces lifetime customer value because switching is so easy.
CISee Continuous Improvement
CIFSee Cost, Insurance, Freight.
City DriverA motor carrier driver who drives a local route as opposed to a long-distance, intercity route.
CLCarload rail service requiring shipper to meet minimum weight.
Class I carrierA classification of regulated carriers based upon annual operating revenues,motor carriers of property: > or = $5 million; railroads: > or =$50 million; motor carriers of passengers: > or =$3 million.
Class II carrierA classification of regulated carriers based upon annual operating revenues,motor carriers of property: $1-$5 million; railroads: $10-$50 million; motor carriers of passengers: < or = $3 million.
Class III carrierA classification of regulated carriers based upon annual operating revenues,motor carriers of property: < or = $1 million; railroads: < or = $10 million.
Class RateRate for commodities grouped according to similar shipping characteristics. Applies to groups of articles contained in the territorial rating column in classification schedules.
ClassificationAn alphabetical listing of commodities, the class or rating into which the commodity is placed, and the minimum weight necessary for the rate discount; used in the class rate structure.
Classification yardA railroad terminal area where rail cars are grouped together to form train units.
Clean Bill of LadingA Bill of Lading signed by the carrier for merchandise received in apparent good condition (no damage or missing pieces of freight).
Clearance1) Custom Learance certificate that states that all legal requirements having been met and a ship is free to leave port.2)A document stating that a shipment is free to be imported into the country after all legal requirements have been met.
Clearance TerminalTerminal where Customs facilities for the clearance of goods are available.
ClearinghouseA conventional or limited purpose entity generally restricted to providing specialized services, such as clearing funds or settling accounts.
CLMCouncil of Logistics Management, now known as The Council of Supply Chain Management Professionals.
Closed Loop MRPA system build around material requirements planning that includes the additional planning processes of production planning (sales and operations planning), master production scheduling, and capacity requirements planning.The term “closed loop implies not only that each of these processes is included in the overall system, but also that feedback is provided by the execution processes so that the planning can be kept valid at all times..
Closed Ventilated ContainerA container of a closed type, similar to a general purpose container, but specially designed for carriage of cargo where ventilation, either natural or mechanical (forced), is necessary.
Closed-loop corrective action (CLCA)A sophisticated engineering system designed to document, verify and diagnose failures, recommend and initiate corrective action, provide follow-up and maintain comprehensive statistical records.
Co-DestinyIs a strategic relationship where the organizations involved choose to share common destinies in all aspects of their business, for mutual benefit. The relationship relies on total trust and both organizations become fully interdependent and as such they succeed or fail together.
Collaborative Planning, Forecasting and Replenishment (CPFR)A collaboration process whereby supply chain trading partners can jointly plan key supply chain activities from production and delivery of raw materials to production and delivery of final products to end customers.
Collapsible ContainerContainer which can be easily folded, disassembled and reassembled.
Co-LoadTwo shipments from different terminals combined to ship as one load.
Co-makershipThe long-term relationship between e.g. a supplier or a carrier and a customer, on the basis of mutual confidence.
Co-Managed Inventory (CMI)A form of continuous replenishment in which the manufacturer is responsible for replenishment of standard merchandise, while the retailer manages the replenishment of promotional merchandise.
Combination ChassisA chassis which can carry either one forty foot or thirty foot container or a combination of shorter containers e.g. 2 x 20 foot.
Combination Through RateA through rate determined by combining two or more rates published in different tariffs.
Commodity Box RateA rate classified by commodity and quoted per container.
Commodity BuyingGrouping like parts or materials under one buyer’s control for the procurement of all requirements to support production.
Commodity Procurement StrategyThe purchasing plan for a family of items. This would include the plan to manage the supplier base and solve problems.
Commodity rateA rate for a specific commodity and its origin-destination.
Common Access ReferenceA key to relate all subsequent transfers of data to the same business case or file.
Common costA cost that cannot be directly assignable to particular segments of the business but that is incurred for the business as a whole.
Common TariffA tariff published by and for the account of two or more transportation lines as issuing carriers.
Company CultureA system of values, beliefs, and behaviors inherent in a company. To optimize business performance, top management must define and create the necessary culture.
Competitive AdvantageValue created by a company for its customers that clearly distinguishes it from the competition, and provides its customers a reason to remain loyal.
Competitive BidA price/service offering by a supplier that must compete with offerings from other suppliers.
Complete & On-Time Delivery (COTD)A measure of customer service. All items on any given order must be delivered on time for the order to be considered as complete and on time
Complete Manufacture to Ship TimeAverage time from when a unit is declared shippable by manufacturing until the unit actually ships to a customer.
Compliance CheckingThe function of EDI processing software that ensures that all transmissions contain the mandatory information demanded by the EDI standard.
Compliance MonitoringA check done by the VAN/third party network or the translation software to ensure the data being exchanged is in the correct format for the standard being used.
Compound unit rateA compound duty rate is an ad valorum rate plus a specific rate that is based on some unit of measure.
Computed ValueA valuation method whereby a profit value (based on margin) is added to the costs of production to determine the price of a good.
Computer-aided design (CAD)Computer-based systems for product design that may incorporate analytical and “what if” capabilities to optimize product designs. Many CAD systems capture geometric and other product characteristics for engineering data- management systems, producibility and cost analysis, and performance analysis.
Computer-aided manufacturing (CAM)Computerized systems in which manufacturing instructions are downloaded to automated equipment or to operator workstations.
Computer-aided process planning (CAPP)Software-based systems that aid manufacturing engineers in creating a process plan to manufacture a product who’s geometric, electronic, and other characteristics have been captured in a CAD database. CAPP systems address such manufacturing criteria as target costs, target lead times, anticipated production volumes, availability of
Computer-Based Training (CBT)Training that is delivered via computer workstation and includes all training and testing materials.
Computer-integrated manufacturing (CIM)A variety of approaches in which computer systems communicate or interoperate over a local-area network. Typically, CIM systems link management functions with engineering, manufacturing, and support operations. In the factory, CIM systems may control the sequencing of production operations, control operation of automated equipment and conveyor systems, transmit manufacturing instructions, capture data at various stages of the manufacturing or assembly process, facilitate tracking and analysis of test results and operating parameters, or a combination of these.
Computerized maintenance management systems (CMMS)Software-based systems that analyze operating conditions of production equipment : vibration, oil analysis, heat, etc. : and equipment-failure data, and apply that data to the scheduling of maintenance and repair inventory orders and routine maintenance functions. A CMMS prevents unscheduled machine downtime and optimizes a plant’s ability to process product at optimum volumes and quality levels.
Computerized process simulationUse of computer simulation to facilitate sequencing of production operations, analysis of production flows, and layout of manufacturing facilities.
Conair ContainerThermal container served by an external cooling system (e.g. a vessel’s or Clip On Unit), which regulates the temperature of cargo.
Concealed DamageWhen goods in an apparently undamaged container are damaged. Claims are hard to settle because neither shipper nor carrier wants to accept responsibility.
Concurrent engineeringA cross-functional, team-based approach in which the product and the manufacturing process are designed and configured within the same time frame, rather than sequentially.
ConesDevices for facilitating the loading, positioning and lashing of containers. The cones insert into the bottom castings of the container.
Configuration managementThe lifecycle management of a product and/or process that includes design, ordering, shipping, customer usage and service or warranty repair history to ensure conformance to the desired configuration. It includes history and documentation on the materials, production facilities, manufacturing process and engineering changes over the product lifecycle.
configuratorA final item description tool used in assemble-to-order (ATO) environments that defines the available product options and accessories, and builds product cost and sales price information from the options chosen.
Configure/Package-to-OrderA process where the trigger to begin manufacture, final assembly or packaging of a product is an actual customer order or release, rather than a market forecast. In order to be considered a Configure-to-Order environment, less than 20% of the value-added takes place after the receipt of the order or release, and virtually all necessary design and process documentation is available at time of order receipt.
Confirming OrderA purchase order issued to a supplier, listing the goods or services and terms of an order placed orally or otherwise before the usual purchase document.
ConsensusA state in which all the members of a group support an action or decision, even if some of them don’t fully agree with it.
Consignee1) Person who receives goods shipped from a consignor. 2) The party to whom goods are shipped and delivered . The receiver of freight shipment
Consignment1) A shipment that is handled by a common carrier. 2) The process of a supplier placing goods at a customer location without receiving payment until after the goods are used or sold. Also see: Consignment Inventory
Consignment Inventory1) Goods or product that are paid for when they are sold by the reseller, not at the time they are shipped to the reseller. 2) Goods or products which are owned by the vendor until they are sold to the consumer.
Consignor1) The person or firm from whom the goods have been received for shipment, the seller, shipper, or exporter.2) The sender of a freight shipment
Consolidated LoadA number of small individual shipments, possibly by different shippers, combined into a single large load, to take advantage of economies of scale.
ConsolidationCombining less-than-carload or less-than-truckload shipments, to make carload/truckload movements.
Consortium1) Consortium is a form of cooperation between two or more carriers to operate in a particular trade. 2) A group of companies that work together to jointly produce a product,service or project
Consular InvoiceA document required by some foreign countries that describes a shipment of goods and shows information, such as the consignor, consignee, and value of the shipment. Certified by a consular official of the foreign country, it is used by customs officials to verify the value, quantity, and nature of the shipment.
Consumer packaged goods (CPG)Consumable goods such as food and beverages, footwear and apparel, tobacco, and cleaning products. In general, CPGs are things that get used up and have to be replaced frequently, in contrast to items that people usually keep for a long time, such as cars and furniture.
Consumer-Centric DatabaseDatabase with information about a retailer’s individual consumers, used primarily for marketing and promotion.
Consuming the ForecastThe process of reducing the forecast by customer orders or other types of actual demands as they are received. The adjustments yield the value of the remaining forecast for each period.
Container1) A “box,” typically 10 to 40 feet long, which is primarily used for ocean freight shipments. For travel to and from ports, containers are loaded onto truck chassis or on railroad flatcars. 2) The packaging, such as a carton, case, box, bucket, drum, bin, bottle, bundle, or bag, that an item is packed and shipped in.
Container BolsterA container floor without sides or end walls which does not have the ISO corner fittings and is generally used for Ro/Ro operations.
Container Check DigitThe 7th digit of the serial number of a container used to check whether prefix and serial number are correct.
Container crane (onshore)A specially designed land-based crane on tracks for loading or unloading containers from vessels.
Container DepotStorage area for empty containers.
Container EquivalentsThe internationally recognized standard conversions that serve as the basis for converting containers of various sizes into comparable units.
Container Freight StationA carrier facility where less-than-container load shipments are consolidated for shipment, unloaded for shipment, or unloaded for final delivery. The term CFS Shipment indicates less than a container load.
Container LeaseThe contract by which the owner of containers (lessor) gives the use of containers to a lessee for a specified period of time and for fixed payments.
Container Load PlanA list of items loaded in a specific container and where appropriate their sequence of loading.
Container ManifestThe document specifying the contents of particular freight containers or other transport units, prepared by the party responsible for their loading into the container or unit.
Container PoolA certain stock of containers which is jointly used by several container carriers and/or leasing companies.
Container PrefixA four letter code that forms the first part of a container identification number indicating the owner of a container.
Container Safety ConventionInternational convention for safe containers.
Container Security Initiative (CSI)The Container Security Initiative (CSI) is a Customs initiative designed to prevent the smuggling of terrorist weapons in ocean-going cargo containers. Launched in January 2002, CSI emphasizes pre-screening, as well as the stationing of U.S. Customs personnel at foreign ports
Container Serial NumberA seven digit serial number (6 plus 1 Check Digit) that forms the second part of a container identification number.
Containerised shipA ship specially constructed to handle containerized cargo.
Container Size CodeAn indication of 2 digits of the nominal length and nominal height. See also Size/Type ISO6346.
Container TerminalPlace where loaded and/or empty containers are loaded or discharged into or from a means of transport.
Container Type CodeTwo digits, the first of which indicates the category and the second of which indicates certain physical characteristics or other attributes.
Containerization1) Using box-like device to store, protect and handle a number of packages as a unit of transit. 2) Shipping system based on large cargo-carrying containers that can be interchanged between trucks, trains, and ships without rehandling contents.
Contingency InsuranceWhen a product is sold under terms that require the buyer to provide insurance coverage, the seller may elect to purchase backup insurance,in case the coverage provided by the buyer is not sufficient to cover the value of the shipment.
Contingency planningPreparing to deal with calamities (e.g., floods) and non-calamitous situations (e.g., strikes) before they occur
Continuous Flow Distribution (CFD)The streamlined pull of products in response to customer requirements while minimizing the total costs of distribution.
Continuous Process Improvement (CPI)A never-ending effort to expose and eliminate root causes of problems; small-step improvement as opposed to big-step improvement. Synonym: Continuous Improvement. Also see: Kaizen
Continuous ReplenishmentContinuous Replenishment is the practice of partnering between distribution channel members that changes the traditional replenishment process from distributor-generated purchase orders, based on economic order quantities, to the replenishment of products based on actual and forecasted product demand.
Continuous Replenishment Planning (CRP)A program that triggers the manufacturing and movement of product through the supply chain when the identical product is purchased by an end user.
Continous sealA term denoting that seals on a vehicle remained intact during the movement from origin to destination.
Continuous-flow, fixed-path equipmentMaterials handling devices that include conveyors and drag lines.
Contract CarrierA carrier that does not serve the general public, but provides transportation for hire for one or a limited number of shippers under a specific contract.
ContributionThe difference between sales price and variable costs. Contribution is used to cover fixed costs and profits.
Contribution MarginAn amount equal to the difference between sales revenue and variable costs.
Controlled AccessReferring to an area within a warehouse or yard that is fenced and gated. These areas are typically used to store high-value items and may be monitored by security cameras
Convertor DollyAn auxiliary undercarriage assembly consisting of a chassis, fifth wheel and towbar used to convert a semitrailer or a container chassis to a full trailer.
ConveyorA materials handling device that moves freight from one area to another in a warehouse. Roller conveyors make sue of gravity, whereas belt conveyors use motors.
Co-opetitionA combination of cooperation and competition that offers the counter intuitive possibility for rivals to benefit from each other’s seemingly competitive activities.
Co-PackerA contract co-packer produces goods and/or services for other companies, usually under the other company’s label or name. Co-packers are more frequently seen in consumer packaged goods and foods.
Core CompetencyBundles of skills or knowledge sets that enable a firm to provide the greatest level of value to its customers in a way that is difficult for competitors to emulate and that provides for future growth.
Core ProcessThat unique capability that is central to a company’s competitive strategy.
Cost and FreightShipper pays the ocean freight and other costs (Accessorial, Inland Transportation, etc.) associated with the movement of the cargo to a particular point of the consignee’s choosing. The consignee pays the Insurance.
Cost and InsuranceShipper pays the for the insurance and shipping related costs other than ocean freight, associated with the movement of the cargo to a particular point of the consignee’s choosing. The consignee pays the Ocean freight.
Cost DriverIn accounting, any situation or event that causes a change in the consumption of a resource, or influences quality or cycle time.
Cost Driver AnalysisIn cost accounting, the examination, quantification, and explanation of the effects of cost drivers. The results are often used for continuous improvement programs to reduce throughput times, improve quality, and reduce cost.
Cost ElementIn cost accounting, the lowest level component of a resource, activity, or cost object.
Cost ManagementThe management and control of activities and drivers to calculate accurate product and service costs, improve business processes, eliminate waste, influence cost drivers, and plan operations. The resulting information will have utility in setting and evaluating an organization’s strategies.
Cost of Goods Sold (COGS)The amount of direct materials, direct labor, and allocated overhead associated with products sold during a given period of time, determined in accordance with Generally Accepted Accounting Principles (GAAP)
Cost trade-offThe interrelationship among system variables indicates that a change in one variable has cost impact upon other variables. A cost reduction in one variable may be at the expense of increased cost for other variables, and vice versa.
Cost VarianceIn cost accounting, the difference between what has been budgeted for an activity and what it actually costs.
Cost, Insurance, Freight (CIF)A freight term indicating that the seller is responsible for cost, the marine insurance, and the freight charges on an ocean shipment of goods.
COTDSee Complete & On-Time Delivery
Council of Supply Chain Management Professionals (CSCMP)The CSCMP is a not-for-profit professional business organization consisting of individuals throughout the world who have interests and/or responsibilities in logistics and supply chain management, and the related functions that make up these professions. Its purpose is to enhance the development of the logistics and supply chain management professions by providing these individuals with educational opportunities and relevant information through a variety of programs, services, and activities.
Countervailing DutiesDuties assessed by a country to remedy the unfair advantage that certain industries or manufacturer gain when they are unfairly subsidized by their governments.
Country ChartA chart that contains certain licensing requirements based on destination and reason for control.
Courier serviceA fast, door-to-door service for high-valued goods and documents; firms usually limit service to shipments of 50 pounds or less.
CPFRSee Collaborative Planning Forecasting and Replenishment
CPGSee Consumer Packaged Goods
CPISee Continuous Process Improvement
Credit LevelThe amount of purchasing credit a customer has available. Usually defined by the internal credit department and reduced by any existing unpaid bills or open orders.
Critical DifferentiatorsThis is what makes an idea, product, service or business model unique from its competitors
Critical Success Factor (CSF)Those activities and/or processes that must be completed and/or controlled to enable a company to reach its goals.
Critical value analysisA modified ABC analysis in which a subjective value of criticalness is assigned to each item in the inventory.
CRMSee Customer Relationship Management
Cross DockingA distribution system in which merchandise received at the warehouse or distribution center is not put away, but instead is readied for shipment to retail stores. Cross docking requires close synchronization of all inbound and outbound shipment movements. By eliminating the put-away, storage and selection operations, it can significantly reduce distribution costs.
Cross functionalA term used to describe a process or an activity that crosses the boundary between functions. A cross functional team consists of individuals from more than one organizational unit or function.
Cross SellThe practice of attempting to sell additional products to a customer during a sales call. For example, when the CSR presents a camera case and accessories to a customer that is ordering a camera
Cross TradesTerm used in shipping for the services of a vessel between nations other than the nation in which the vessel is registered .
Cross-ShipmentMaterial flow activity where materials are shipped to customers from a secondary shipping point rather than from a preferred shipping point.
Cross-SubsidyIn cost accounting, the inequitable assignment of costs to cost objects, which leads to over costing or under costing them relative to the amount of activities and resources actually consumed.
CRPSee Continuous Replenishment Program
CSCMPSee Council of Supply Chain Management Professionals.
CSFSee Critical Success Factor
CSISee Container Security Initiative
CSRSee Customer Service Representative
CTPSee Capacity to Promise
C-TPATSee Customs-Trade Partnership against Terrorism
CubageCubic volume of space being used or available for shipping or storage.
CubeThe volume of the shipment or package (the product of the length x width x depth).
Cube RateA dimensional shipping rate based on the amount of trailer space that is used, instead of weight. Used for light bulky loads.
Cube UtilizationIn warehousing, a measurement of the utilization of the total storage capacity of a vehicle or warehouse.
Cube-OutWhen the cubic capacity of a container is reached before the weight capacity.
Cubic CapacityThe carrying capacity of a vehicle expressed in cubic feet/meters.
Cumulative capacityA running sum for consecutive periods of capacity capabilities for a given resource that indicates total availability over those periods, and aids in determining whether rescheduling will resolve intermittent problems.
Cumulative Lead TimeThe total time required to source components, manufacture and ship a product.
cumulative lead timeTotal lead time for an end item, calculated by taking the individual lead times for all items on the critical path through all levels of the bill of material (BOM). The cumulative lead time describes the lead time required to finish an end item if no raw materials, components or intermediate levels were on hand and had to be ordered and produced to create the final item.
Cumulative Source/Make Cycle TimeThe cumulative internal and external lead time to manufacture shippable product, assuming that there is no inventory on-hand, no materials or parts on order, and no prior forecasts existing with suppliers. (An element of Total Supply Chain Response Time)
CurrencyA currency is a unit of exchange, facilitating the transfer of goods and services.
Currenct Adjustment FactorA charge used to equalize fluctuating rates of exchange. An ancillary charge on some ocean freight shipments, expressed as a percentage of a base rate, to compensate ocean carriers for fluctuations in the value of the U.S. dollar (pr other currency) against foreign currencies.
Current good manufacturing practices (CGMP)Regulations enforced by the U.S. Food and Drug Administration for food and chemical manufacturers and packagers.
Customer1) In distribution, the Trading Partner or reseller, i.e. Wal-Mart, Safeway, or CVS. 2) In Direct-to-Consumer, the end customer or user.
Customer DrivenThe end user, or customer, motivates what is produced or how it is delivered.
Customer FacingThose personnel whose jobs entail actual contact with the customer.
Customer Interaction CenterSee Call Center
Customer OrderAn order from a customer for a particular product or a number of products. It is often referred to as an actual demand to distinguish it from a forecasted demand.
Customer ProfitabilityThe practice of placing a value on the profit generated by business done with a particular customer.
Customer Receipt of Order to Installation CompleteAverage lead-time from receipt of goods at the customer to the time when installation (if applicable) is complete, including the following sub-elements: time to get product up and running, and product acceptance by customer. (An element of Order Fulfillment Lead Time)
Customer Relationship Management (CRM)This refers to information systems that help sales and marketing functions, as opposed to the ERP (Enterprise Resource Planning), which is for back-end integration.
Customer SegmentationDividing customers into groups based on specific criteria, such as products purchased, customer geographic location, etc.
Customer serviceActivities between the buyer and seller that enhance or facilitate the sale or use of the seller’s products or services.
Customer Service RatioSee Percent of Fill
Customer Service Representative (CSR)The individual who provides customer support via telephone in a call center environment.
Customer Signature/Authorization to Order ReceiptAverage lead-time from when a customer authorizes an order to the time that that order is received and order entry can commence. (An element of Order Fulfillment Lead Time)
Customer/Order Fulfillment ProcessA series of customers’ interactions with an organization through the order filling process, including product/service design, production and delivery, and order status reporting.
Customer-Supplier PartnershipA long-term relationship between a buyer and a supplier characterized by teamwork and mutual confidence. The supplier is considered an extension of the buyer’s organization. The partnership is based on several mutually beneficial commitments.
CustomizationCreating a product from existing components into an individual order. Synonym: Build to Order.
Customs BrokerThe importer’s agent licensed by the Customs Service to enter and clear goods through Customs.
Customs Cooperation CouncilAn international Customs organization in Brussels that oversees, and strives to harmonize, tariff and regulatory matters worldwide.
Customs House BrokerA business firm that oversees the movement of international shipments through customs and ensures that the documentation accompanying a shipment is complete and accurate.
Customs tariffSchedule of charges assessed by the government on imports/exports.
Costoms unionA union of countries where there are no duties on products traded among member nations and common external tariffs levied on imported products from non-member states.
Customs-Trade Partnership against Terrorism (C-TPAT)A joint government/business initiative to build cooperative relationships that strengthen overall supply chain and border security. The voluntary program is designed to share information that will protect against terrorists’ compromising the supply chain.
CWTSee Hundredweight
Cycle inventoryAn inventory system where counts are performed continuously, often eliminating the need for an annual overall inventory. It is usually set up so that A items are counted regularly (i.e., every month), B items are counted semiregularly (every quarter or six months), and C items are counted perhaps only once a year.
Cycle TimeThe amount of time it takes to complete a business process.
Cycle Time to Process Excess Product Returns for ResaleThe total time to process goods returned as Excess by customer or distribution centers, in preparation for resale. This cycle time includes the time a Return Product Authorization (RPA) is created to the time the RPA is approved, from Product Availablability for Pick-up to Product Received and from Product Receipt to Product Available for use.
Cycle Time to Process Obsolete and End-of-Life Product Returns for DisposalThe total time to process goods returned as Obsolete & End of Life to actual Disposal. This cycle time includes the time a Return Product Authorization (RPA) is created to the time the RPA is approved, from Product Available for Pick-up to Product Received and from Product Receipt to Product Disposal/Recycle.
Cycle Time to Repair or Refurbish Returns for UseThe total time to process goods returned for repair or refurbishing. This cycle time includes the time a Return Product Authorization (RPA) is created to the time the RPA is approved, from Product Available for Pick-up to Product Received, from Product Receipt to Product Repair/Refurbish begin, and from Product Repair/Refurbish begin to Product Available for use.
Cyclical DemandA situation where demand patterns for a product run in cycles driven by seasonality,festivities ,natural calamities etc.

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